Tuesday, May 19, 2009

Want some good news? LIBOR indicates the credit crunch might be over

Libor indicates credit crunch is over, economists say
For the first time since May 2007, Libor returned to a normal level, prompting economists to say the credit crunch has ended. "This marks a return to normal territory and gives us hope that we can cope with anything that comes now," said Peter Chatwell, an interest-rate strategist at Credit Agricole's Calyon. "It indicates that the banks are well capitalized, with no more surprises. It gives us hope that we have a functioning banking system and that we can now go about the job of running the broader economy." The Times (London)

To view the TED spread, go to: http://www.bloomberg.com/apps/cbuilder?ticker1=.TEDSP%3AIND

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